PV Subsidy Policies In 2025, governments worldwide and especially in India are doubling down on photovoltaic (PV) support. Whether you’re a homeowner, farmer, or solar project developer, here’s a quick lowdown on the latest initiatives and market movements impacting your solar plans.
Residential: Rooftop Solar Incentives
- PM Surya Ghar Muft Bijli Yojana
Launched in February 2024, this flagship Indian scheme offers households significant support. Registered beneficiaries get up to ₹78,000 in subsidy for 3 kW rooftop systems and enjoy ~300 free solar units monthly. As of January 2025, the government upped central assistance by approximately 23%, and the program runs through March 31, 2026. - Grid‑Connected Rooftop Subsidies
Through the MNRE scheme, households can claim 40% subsidy on systems ≤3 kW, and 20% for those 3–10 kW. State-level add-ons include Gujarat offering ₹30,000 per kW up to 2 kW (₹18,000 more for the next 1 kW).
Agriculture: Solar Pumps & Farmer Empowerment
- PM‑KUSUM Scheme
This farmer-centric initiative provides up to a 60% subsidy on solar irrigation pumps, with 30% covered via loans and just a 10% upfront payment. It encourages clean-energy irrigation and allows farmers to sell surplus power back to the grid. - State‑Level Ramp‑Ups
In Karnataka’s Mysuru & Chamarajanagar districts, a horticulture department is offering pumps subsidized at 50%, covering up to ₹3 lakh for 5 HP systems. Meanwhile, Madhya Pradesh is preparing massive feeder-based solar plants totaling 5 GW with both central subsidies and ₹20,000 Cr in private investment lined up.
Utility‑Scale & Manufacturing Updates
- Extension for CPSU Projects
MNRE has granted a 9-month extension for select Central Public Sector Undertaking solar projects, shifting completion deadlines to December 2025 to address module supply and infrastructure challenges. - Manufacturing Surge & Localization Push
India boosted its solar cell manufacturing capacity from 9 GW to 25 GW between March 2024–25. A mandate from June 2026 will require solar cell use in public projects to be limited to domestically produced units.
Key Takeaways
| Who | What to Watch |
|---|---|
| Homeowners | Maximize rooftop subsidy under PM Surya Ghar before March 2026 |
| Farmers | Benefit from both central (KUSUM) and local state pump subsidies |
| Developers | Leverage new timelines for CPSU projects and mass procurement tenders |
| Solar Industry | Domestic cell capacity boom opens doors to local manufacturing incentives |
With government extensions, rising manufacturing momentum, and layered incentives reaching homes and farms, 2025–26 is shaping up as a crucial pivot for solar adoption in India. If you’ve been considering solar whether rooftop or off-grid farm setups now’s the time to act before key deadlines expire.
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